- Pre-feasibility study on Tres Quebradas underway
- Run by experienced mining industry professionals
- Pilot plant will shortly be operational
- Situated in one of the best locations for lithium in the world
What does Neo Lithium Corp do?
Neo Lithium Corp (CVE:NLC) is a resources company that specialises in addressing the growing demand for lithium generated by the growth in the electric vehicle market and, more generally, new generation batteries.
The company is led by experienced mining professionals from Argentina as well as from the wider international mining community, who have particular expertise in lithium salars.
What does Neo Lithium Corp own?
The principal asset is the Tres Quebradas project, also known as 3Q, which is located at the southern end of what is known as the “lithium triangle”, in Chile. The lithium triangle is one of the world’s most prolific areas for the production of lithium.
Tres Quebradas contains nearly 7mln tonnes of lithium carbonate contained in around 2bn cubic metres of brine.
A preliminary economic assessment completed on the project in 2017 showed it to have a net present value of around US$1.2bn after tax, with the internal rate after tax likely to ring in at over 27%. Initial capex was set at US$490mln.
A pilot plant has recently been shipped to Argentina from Chile, where it was constructed. It’s estimated that it will take around 45 days for the plant to clear customs and then be assembled put into operation.
A 4% concentrate of lithium brine is currently being prepared in Neo Lithium’s evaporation ponds. Once the plant is operational, the processing of these brines will eventually produce lithium carbonate.
Neo Lithium is also in the process of putting together a pre-feasibility study for Tres Quebradas, following the completion of a preliminary economic assessment in 2017. Environmental studies are proceeding in parallel with this work on economics.
In addition, Neo Lithium is getting ready for a substantial drilling campaign at Tres Quebradas.
Chief operating officer pleased with recent progress
“I am pleased with the progress made and our ability to ship and commission the plant during the first quarter which puts us on track with our objectives,” said Gabriel Pindar, chief operating officer of Neo Lithium.
“Management hopes the proposed pre-feasibility study will support that the plant can produce battery-grade lithium at one of the most competitive cash cost of the market.”